Why Traders Are Buzzing About Qualcomm, NXP, Alkermes, Cerecor, and More

Alkermes Plc (NASDAQ:ALKS) shares have surged by over 40% in extended market trading after the company announced positive topline results from a phase 3 study of ALKS 5461 for major depressive disorder. According to the study, once-daily ALKS 5461 substantially improved depression scores in patients with inadequate response to standard therapies for depression. The study met its primary endpoint of reducing the symptoms of depression in patients with major depressive disorder in a statistically meaningful way when compared to placebo. Alkermes intends to request a meeting with the FDA to discuss the next steps on the path to potential regulatory submission. Investors are excited because the treatment of major depressive disorder is a big market, one expected to reach $5.8 billion in value by 2025 according to consulting firm GlobalData. 25 funds in our database had a long position in Alkermes Plc (NASDAQ:ALKS) at the end of the second quarter.

Riding on the coattails of Alkermes’s positive phase 3 data of ALKS 5461 is Cerecor Inc (NASDAQ:CERC), which is 56% higher thanks to the company’s lead product candidate, CERC-301, also being a potential treatment of major depressive disorder. CERC-301 is a NR2B specific NMDA antagonist and is currently in phase 2 trials, while Alkermes’ ALKS 5461 is a Mu receptor partial agonist/kappa receptor antagonist. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, three owned a total of $722,000 worth of Cerecor Inc (NASDAQ:CERC) shares on June 30.

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